Navigate:

Reacting to the downgrade

Mitt Romney and Jon Huntsman are the first candidates to weigh in on the S&P's downgrade of the U.S. credit rating, an event that as Ben points out has mostly symbolic instead of specific policy meaning, and one that will be heavily infused with a dose of blame in various directions.

How the circumstances from that blame play out is unclear, given that it will be spread around quite a bit.

But Romney and Huntsman dove deep, immediately and with sharp rhetorical flourishes, in on the issue that voters will yoke to the impact the economy has had on their own lives.

Romney: “America’s creditworthiness just became the latest casualty in President Obama’s failed record of leadership on the economy. Standard & Poor’s rating downgrade is a deeply troubling indicator of our country’s decline under President Obama. His failed policies have led to high unemployment, skyrocketing deficits, and now, the unprecedented loss of our nation’s prized AAA credit rating. Today, President Obama promised that ‘things will get better.’ But it has become increasingly clear that the only way things will get better is with new leadership in the White House.”

Huntsman: "Out-of-control spending and a lack of leadership in Washington have resulted in President Obama presiding over the first downgrade of the United States credit rating in our history. For far too long we have let reckless government spending go unchecked and the cancerous debt afflicting our nation has spread. We need new leadership in Washington committed to fiscal responsibility, a balanced budget, and job-friendly policies to get America working again."

Bachmann: “Tonight’s decision by S&P to downgrade our credit rating to AA+ is a historically significant and serious event for the United States. The United States has had a AAA credit rating since 1917. That rating has endured the great depression, World War II, Korea, Vietnam and the terrorist attacks on 9/11. This President has destroyed the credit rating of the United States through his failed economic policies and his inability to control government spending by raising the debt ceiling.

“We were warned by all of the credit agencies that a failure to deal with our debt would lead to a downgrade in our credit rating, but instead he submitted a budget that had a $1.5 trillion deficit and then requested a $2.4 trillion blank check. President Obama is destroying the foundations of the U.S. economy one beam at a time. I call on the President to seek the immediate resignation of Treasury Secretary Timothy Geithner and to submit a plan with a list of cuts to balance the budget this year, turn our economy around and put Americans back to work."

Gingrich: "The Obama disaster continues. Highest food stamp level and lowest credit rating in history in the same 24 hours."

Santorum: “If this downgrade holds, then it’s another example in a long line of examples of the President’s failure of leadership. Is anyone surprised at this point? There are 14 million people out of work and looking to the White House for answers – but they are receiving nothing but a blank stare. The markets are scared and the credit downgrade has happened because the President and this Congress continue to address the symptoms and not the disease. This nation is spending more money than it takes in and the world knows it – now, it’s time to show the world that the United States has the fortitude and resolve to pass a Balanced Budget Amendment to stop out of control spending and shrink the scope of government once and for all. The deal the President cut with Congress was supposed to avoid this downgrade but all it did was once again kick the can down the road.

"President Obama and his Administration have been a failure. I’ve even heard the US Treasury is going back to Standard and Poors to say that a two trillion dollar mathematical error by S&P contributed to the downgrade. So, in addition to blaming President Bush for all of its problems, now the White House is blaming S&P – but this happened on the President’s watch – and he has to deal with it. I guess President Obama is left to cling to the to the “hope” that a mathematical error caused this. Is that the “hope” the President was talking about?

"Folks, an AA rating should be so far in our rear view mirror – that no mathematical error should affect it. Tonight, I’m saddened for the millions out of work – but I’m hopeful that I will replace Barack Obama as President and get this country and its economy moving again."

Pawlenty: "This is a sad moment for the United States, but it's a reflection that our country is in trouble. President Obama is inept when it comes to creating the conditions or job creation and economic growth. It's time for a new direction and a new President."

Paul: “We were told by proponents of increasing the debt ceiling that a credit downgrade would come if we didn’t raise the limit, but the opposite was true. The ratings agencies had been warning us for some time that it is imperative upon the U.S. government to get its fiscal house in order and tackle its debt and deficit problem by taking serious steps.

“Unfortunately, the game in Washington has been one of partisan blaming and bipartisan out-of-control spending. America has been dealing with this severe economic crisis for years because the Washington establishment failed to focus on the true issues at hand: a declining dollar and out-of-control spending."

Readers' Comments (136)

Well its true. We did have debt but democrats once they got total control of the government thought they were in europe. Only thing is they forgot that europe is in crisis already over the very programs they are heading towards full speed.

Electing Romney or Huntsman doesn't automatically get the U.S. its AAA credit rating back. Neither does defeating Obama. Or re-electing Obama. No magic leaver from the Oval Office to S & P. So, nice try, fellas, but you don't have any idea how to get our credit rating back. Gosh, it couldn't be related to a dedicated income stream for short-term deficit reduction and long-term debt reduction, could it? Something along a 75 year time frame? Leadership plans for the long term, doesn't it? Not the next quarter or the next election cycle.

both Romney and former US China emnbassador are oportunistic, as both know its not new leadership or new friendly policies to put people to work what needed now.....why wait if Congress and GOps are blocking all, if just could agree now not waiting, to enact comon sense policies, stimulus, public investments to put people to work....Obama need to go of course, but we need those policies NOW, so Romny and Huntsman need stop speaking crap as remained silent during "debt deal" impasse, reality is Obama can not pass bills because GOps obstruction...America and us unemloyed can not wait and he has no control to put people back to work...i voted Obama (will not repeat) but GOPs need to STOP blocking America...

When will the American People remind these crazy republicans of the years 2001-2008 and what a republican president and congress did to this country and the economy - I realize Bachmann failed American History just by the way she talks - it's time these nut cases are reminded who was the most responsible for this mess - REPUBLICANS !!!!!!!!!!!!!

Duh -- many people said it, including me, in the deal, Debt limit should be exchanged with the Balanced Budget Amendment. Go ahead libs, bury your heads deeper in the sand -- go ahead and tell us how GOP should be punished as criminals....

The American people know that Obama walked into an economic nightmare and that the Tea Party made it worse. They're not stupid. Look at the polls. The tea party walked from deals that would have prevented this and they know it.

WELL, you can't dispute one thing and that is that President Obama WANTED a balanced approach to the spending cuts which would have resulted in a 4 Trillion dollar spending cut package but OH NO....Boehner and his do nothing republicans just couldn't come together and agree on anything bigger than the 2.4 Trillion package that had NO tax cuts in it or closure of tax loopholes. It also had nothing in it that would GROW the economy. Most important, their spending cuts will do MORE HARM to the nation's debt and economy which is clearly the message in this downgrade.

GOOD JOB GOP and TEAPARTY OBSTRUCTIONISTS. I hope you get the message that "my way or the highway doesn't work in this country".

By the way, instead of blaming President Obama for this downgrade and blocking SEVERAL proposals he has pending approval in Congess right now to stimulate job growth, why don't you get back from your stinking vacations and DO YOUR JOB. Anybody that only works 3 days a week, doesn't even deserve a vacation. Go out there in the REAL WORLD and work 6 days a week and take your two weeks vacation a year!

This is big news, in part because it is separate from the direct spin and influence of the U.S. political parties. The biggest criticism one can give the S&P credit rating agency, is that they are too "administrative" (sort of like the "prime" interest rate of the U.S.). In reality, the U.S. Treasury's debt should be judged lower than the S&P's current rating. The U.S. federal government debt is relatively high already, especially considering the $50 trillion or more it owes vis-a-vis unfunded entitlement program obligations. The trend is for relatively large annual U.S. federal government deficits for many years. The White House has no detailed plan for reducing U.S. federal government spending, deficits, or debt -- zero, nothing. On the contrary, the Obama Administration fights efforts to rein in the nation's federal government spending profligacy. A valid question is, why is it that S&P has taken so long to call U.S. federal government debt as less than top quality?

Rating agencies informed Obama in January about the potential of a ratings downgrade to AA.

What was most urgent on Obama's mind, was to get this deal past the election. Is this an indication that getting elected is more important than a functioning US economy?

It was known to all that a spending reduction of $4T was required to show that the USA was serious about getting its financial affairs in order.

Now the American people get to suffer further, thanks to an incompetent government, and importantly, an incompetent president.

Should we not consider a recall of both the president and congress? If it was not for the Tea Party, the discussion of a smaller, more affordable, smart government would not have started. Shame to all those that have tried to berate these great Americans. The president and congress are Lemmings who are leading us to the bankrupty cliff. Let us not follow men of such small minds.

We desire better. Shame upon those who drive the machine politics in WDC.

Rating agencies informed Obama in January about the potential of a ratings downgrade to AA.

What was most urgent on Obama's mind, was to get this deal past the election. Is this an indication that getting elected is more important than a functioning US economy?

It was known to all that a spending reduction of $4T was required to show that the USA was serious about getting its financial affairs in order.

Now the American people get to suffer further, thanks to an incompetent government, and importantly, an incompetent president.

Should we not consider a recall of both the president and congress? If it was not for the Tea Party, the discussion of a smaller, more affordable, smart government would not have started. Shame to all those that have tried to berate these great Americans. The president and congress are Lemmings who are leading us to the bankrupty cliff. Let us not follow men of such small minds.

We desire better. Shame upon those who drive the machine politics in WDC.

Rating agencies informed Obama in January about the potential of a ratings downgrade to AA.

What was most urgent on Obama's mind, was to get this deal past the election. Is this an indication that getting elected is more important than a functioning US economy?

It was known to all that a spending reduction of $4T was required to show that the USA was serious about getting its financial affairs in order.

Now the American people get to suffer further, thanks to an incompetent government, and importantly, an incompetent president.

Should we not consider a recall of both the president and congress? If it was not for the Tea Party, the discussion of a smaller, more affordable, smart government would not have started. Shame to all those that have tried to berate these great Americans. The president and congress are Lemmings who are leading us to the bankrupty cliff. Let us not follow men of such small minds.

We desire better. Shame upon those who drive the machine politics in WDC.

At this point, does it really matter which party is to fault? As President, Obama is the chief officer and the buck should start with him. However, if we have to wait to see if he plans on cutting anything, this country will receive another downgrade! Stop the damn spending, regardless of party and put people back to work! That is the only thing that will get us out of this mess. Kick Obama care out the window and stop the damn spending!! The man wants to socialize the country and is doing it right under the nose of the citizens of this country. Unfortunately, too many of the citizens think the same as him. Wake up, people!!